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Biosignal partners US entrepreneur to commercialise industrial anti-bacterial products
$US1m license fee to Biosignal, 50% share of revenues and new entity to have minimum $12m valuation
11 March 2008, Sydney: Biosignal Limited (ASX: BOS) has today signed a memorandum of understanding to exclusively license the worldwide rights to its unique anti-bacterial technology in industrial applications to a new United States company to be led by high profile entrepreneur Mr Paul Hawken. Mr Hawken has an impressive track record in commercialising innovative technologies. He will create a new corporate entity, raise money and develop the intellectual property globally.
Consideration for the licence to Biosignal will include a licence fee of $US1 million and 50 percent revenue share. Biosignal will be entitled to 50 percent share of the proceeds on any future sale of the new entity but will not hold equity in that company.
The agreement specifies that the new entity must raise a minimum of $US 4 million within 12 months from the signing of a formal license agreement, currently being drafted. Mr Hawken will be executive chair of the new entity and will personally invest in the vehicle as part of the $US 4 million capital raising. He is assembling an experienced management team to drive the new company forward.
The industrial applications specified in this agreement include anti-corrosives for the oil and gas industry, water treatment and anti-microbials for industrial equipment and infrastructure. Pending agreement with current Biosignal partners, existing 3rd party rights for the use of the technology in coatings and plastics and industrial air conditioning will also be assigned to the new company. Industrial applications do not include any applications in the domestic, personal care, agricultural (including aquaculture), medical (human health) and animal health fields.
Mr Hawken is presently Chair of the Pax Group, application specific licensee of the Pax Scientific platform airflow technology. He has been responsible for a number of successful business start-ups and best selling books on business.
He was the founder of Smith & Hawken garden retail business. Starting thirty years ago as a small mail-order company, Smith & Hawken is now a household name in the US as a multi-channel retailer of quality outdoor products marketed through its catalogue, retail stores and web site.
Hawken’s book Natural Capitalism: Creating the Next Industrial Revolution co-authored with Amory Lovins is published in fourteen languages and has been read by several heads of state including President Bill Clinton, who called it one of the five most important books in the world. His books have been published in over 50 countries in 27 languages and have sold over 2 million copies. Growing a Business became the basis of a 17-part PBS series which Mr Hawken hosted and produced.
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Mr Hawken will establish the new entity in the US in consultation with Biosignal. He has agreed to performance criteria including:
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$US 4 million to be raised within 12 months of signing of the license agreement
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Agreement on minimum revenue to Biosignal
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First registration of a product in any jurisdiction by 31 December 2009
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First commercial product launch in any jurisdiction by 31 December 2009
“It is significant that our technology has attracted highly influential entrepreneurs who are committed to driving products to market using a new corporate base in the US and using US funds,” said Prof Peter Steinberg, managing director and CEO.
“This strategy is similar to that already employed by Hawken with the Pax Group. It is a logical approach for a platform technology with numerous applications for which there are strong points of difference. We plan to pursue similar deals for other applications of our technology.”
Improvements to the licensed intellectual property will be owned by the party that creates the improvement. Improvements of the intellectual property made by the new company will be licensed to Biosignal on a royalty free non-exclusive basis for use outside the industrial field.
Enquiries: Peter Steinberg Rudi Michelson
(02) 9209-4106 Monsoon Communications
0422 048 730 0411 402 737
[email protected] [email protected]
About Biosignal and the anti-biofilm technol